Intended Use Plan for the NYS Drinking Water State Revolving Fund

ATTACHMENT III

Loan Fees

Loan Issuance Costs

Fees associated with processing a DWSRF loan are based on the amount financed (i.e., project costs). Issuance costs are calculated as follows:

Program Administration: This cost is calculated by multiplying the project costs by 1.1%. This fee is used to support the administration of the DWSRF program. For non-hardship projects that receive short-term financing, an administrative fee equal to 0.6% will be charged.

State Bond Issuance Charge: Public authorities that sell bonds, including EFC, must collect the State Bond Issuance Charge. The Issuance Charge applies only to leveraged financings. This yearís State Budget amended the Public Authorities Law (PAL) to increase the State Bond Issuance Charge that EFC is required to assess on all DWSRF leveraged financings. In addition, the amendment repealed the section of the PAL that previously allowed EFC to determine the State Bond Issuance Charge on the basis of the amount to be financed for each borrower, requiring the State Bond Issuance Charge to be determined on the basis of the aggregate amount of bonds being issued pursuant to each leveraged financing. A waiver of this legislation was granted by the Division of Budget with an expiration date of March 31, 2003. Accordingly, a State Bond Issuance Charge in the amended range of 0.14% to 0.70% will be assessed on each recipientís leveraged long-term financing through March 31, 2003. Unless the waiver is extended, recipients after that date will be required to pay a State Bond Issuance Charge rate of 0.70%. For planning purposes, applicants applying for the FFY 2003 Summer Pooled Financing should estimate this charge at 0.70% of the total of Project Costs and Direct Expenses. The rate for leveraged financings through March 31, 2003 is determined as follows:

Financed Amount

Rate

$1,000,000 or less

0.14%

$1,000,001 - $5,000,000

0.28%

$5,000,001 - $10,000,000

0.42%

$10,000,001 - $20,000,000

0.56%

More than $20,000,000

0.70%

Loan Maintenance Charge

An annual fee is charged to defray the cost of maintaining loan accounts during the life of the loan. This fee is calculated as 0.11 percent of the outstanding loan balance.

Exceptions to the above fees apply to certain loans. EFC will work with the applicant to determine the appropriate DWSRF loan type. Fees apply to the different types of DWSRF loans as follows: